Former D1 Swimmer Indicted in $22 Million NFT 'Rug Pull' Scheme

Former D1 Swimmer Indicted in $22 Million NFT 'Rug Pull' Scheme

Gavin Mayo, a former University of North Carolina swimming commit, has been indicted alongside Gabriel Hay for allegedly orchestrating a massive NFT fraud scheme. The duo is accused of defrauding investors of over $22 million in cryptocurrency through a "rug pull" operation, where they abandoned projects after soliciting funds. They also face charges of threatening a project manager who attempted to expose their illicit activities.

Key Takeaways

• Former UNC swimming commit Gavin Mayo and Gabriel Hay indicted for a $22 million NFT fraud scheme.

• The alleged "rug pull" involved abandoning projects after collecting investor funds.

• Both face charges of conspiracy to commit wire fraud, wire fraud, and stalking.

• Maximum penalties could lead to 65 years in prison for each individual.

The Allegations: A Multi-Million Dollar "Rug Pull"

According to the U.S. Justice Department, Mayo and Hay, both 23, engaged in a "rug pull" scheme, a type of fraud where creators of digital asset projects solicit funds from investors and then abruptly abandon the project, retaining the investors' money. They are accused of lying to investors and defrauding them of tens of millions of dollars. One notable project, "Vault of Gems," claimed to be the first NFT project backed by jewelry. Mayo allegedly raised millions for this project before abandoning it, citing that the "marketplace never materialized."

Principal Deputy Attorney General Nicole M. Argentieri stated, "Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money. The department is committed to protecting investors and will continue to work with our law enforcement partners to root out fraud involving cryptocurrency and other digital assets and bring offenders to justice."

From D1 Prospect to Crypto Accused

Gavin Mayo, originally from Greensburg, Pennsylvania, was a promising sprinter who placed 9th at the 2019 Pennsylvania AAA Boys’ State Championship meet in the 50 free. He committed to swim at the University of North Carolina and was briefly on the team's roster but never competed for the Tarheels. He subsequently dropped out of UNC and gained a following on TikTok, where he posted content in the "hyper-alpha-male" niche, even referring to himself as the "youngest billionaire in the world."

Legal Ramifications and Broader Context

Mayo and Hay have each been charged with one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking. If convicted, they face a maximum penalty of 20 years in prison for each of the conspiracy and wire fraud counts, and five years for the stalking count, potentially totaling 65 years in jail. This case marks one of the highest-profile cryptocurrency and NFT fraud prosecutions in the United States, following other significant cases like those involving Sam Bankman-Fried and Caroline Ellison in the FTX collapse.

Sources

• Former D1 Swimming Commit Gavin Mayo Indicted in Massive NFT Fraud Scheme, SwimSwam.